Publications

California employers recently received reassurance from the Court of Appeal that minor drafting inconsistencies will not necessarily invalidate an employment arbitration agreement when the parties’ intent is clear. A new California law, however, will narrow the circumstances in which certain disputes may be compelled to arbitration beginning January 1, 2027.

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The National Labor Relations Board (“NLRB”) is likely to reconsider several Biden-era labor decisions following the U.S. Senate’s confirmation of James Macy and David Prouty on August 7, 2026.

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On April 22, 2026, Second District Court of Appeal, Division 7, reaffirmed an important principle for California employers: minor inconsistencies in arbitration agreements will not necessarily render those agreements unenforceable where the parties clearly intended to arbitrate employment disputes. Santana v. Studebaker Health Care Center, LLC (Cal. Ct. App., Second Dist., Div. 7, Apr. 22, 2026).

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On April 24, 2026, Maine enacted 26 MRSA § 622-A which requires Maine employers to disclose pay ranges and maintain records of employees’ pay histories starting July 29, 2026.

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Running a hotel or restaurant means balancing guest service and satisfaction, staffing shortages, and compliance. Below are five common compliance mistakes we continue to see, along with a practical checklist hospitality employers can use before year-end to reduce legal risk.

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Many employers use AI systems to do an initial screening of employment applications received for open positions, and for other purposes as well. Connecticut and Colorado have passed new laws, taking effect soon, that will require employers who use such systems to disclose their use and create potential liability for failure to do so.

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Key Developments Affecting Hotels, Restaurants, and Food and Beverage Operators (Nov 2025–May 2026)

New York has delivered one of its most active six month periods in recent memory for hospitality employers. Legislative changes, agency enforcement shifts, and new appellate decisions are reshaping compliance obligations for hotels, restaurants, and food and beverage operators across the state. This alert summarizes the most consequential developments and outlines what operators should do now to mitigate risk.

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Senate Bill 642, known as the Pay Equity Enforcement Act, amends the Equal Pay and Pay Transparency laws in California. One of the most significant changes under SB 642 is the extension of the statute of limitations for Equal Pay Act claims. Previously, employees generally had two years to file a claim, or three years in cases involving willful violations. SB 642 extends the filing period to three years and broadens employees’ ability to recover compensation for ongoing pay inequities. Further, employees can now seek recovery of lost pay for a period of up to six years for ongoing violations when a claim is filed within the three-year period.

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California employers should prepare for several local minimum wage increases taking effect on July 1, 2026. Although California’s statewide minimum wage increased to $16.90 per hour on January 1, 2026, many cities have adopted higher local wage ordinances that employers must follow when they exceed the state minimum wage. Employers with multi-location operations, remote employees, or workers performing services across jurisdictional boundaries should carefully review their pay practices to ensure compliance with the new updates.

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On May 21, 2026, Governor Newsom issued Executive Order N-6-26 in preparation for the impacts of artificial intelligence on the workforce. The order requires state agencies, labor experts, economists, universities, and industry leaders to develop policies, gather data, and identify early warning signs of AI workforce disruptions.

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